India's corporate fraud watchdog has unearthed a fraud of Rs 297 crore by three electric two-wheeler makers, amid search operations.
The Serious Fraud Investigation Office under the Union Ministry of Corporate Affairs has conducted search operations at the premises of Hero Electric Vehicles, Okinawa Autotech and Benling India over FAME-II violations, according to a media statement released on Monday. These cases arise from the fraudulent availing of EV subsidies amounting to Rs 297 crore.
The FAME II scheme was launched in the year 2019 to promote electric and hybrid vehicles in India. The FAME-II scheme and the Phased Manufacturing Programme (PMP) guidelines, stipulated manufacturing of some key components in India, for the vehicle to be eligible for subsidy under the scheme. The three companies, for claiming subsidies, had deceptively shown compliance with the applicable guidelines to the MHI, which was subsequently found to be incorrect and false.
Upon investigations by SFIO, it is revealed that several restricted parts under the PMP guidelines were either directly or indirectly imported from China thereby flouting the PMP guidelines under FAME–II.
During the search operations, evidence like digital data, books and other material have been recovered. Further investigation is under progress.
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